News: Newsom vetoes AB1840: Law allowing undocumented immigrants to buy homes with zero down payment

On September 6, California Governor Newsom vetoed a bill to expand housing assistance to include undocumented immigrants, citing budget constraints and limited funds for the state housing aid program.

Governor Newsom has vetoed several bills in the past two years citing budgetary issues. In 2023, he vetoed about 15% of the bills sent to his desk, mentioning the state’s poor financial condition and the need to conserve resources in all 50 veto letters.

The AB1840 bill introduced by Democratic State Assemblymember Joaquin Arambula proposed providing up to $150,000 in interest-free housing loan assistance to undocumented immigrants. The bill was passed by the state legislature on August 28.

Arambula stated before the legislative vote, “Regardless of immigration status, the social and economic benefits of homeownership should be made available to everyone.”

In 2021 and 2022, California legislators passed the “California Dream for All” housing assistance program, requiring state agencies to develop frameworks to promote homeownership for low and middle-income Californians.

The program provides funds equivalent to 20% of the purchase price (up to $150,000). When the “Dream for All” program first offered loans in 2023, a rush of applicants overwhelmed the system, depleting the allocated $300 million within two weeks of launch. AB1840 seeks to include undocumented immigrants in this program.

Assemblymember Wendy Carrillo emphasized that hundreds of thousands of undocumented immigrants in California contribute billions of dollars in taxes and stated that AB1840 is a fair distribution method. However, some legislators pointed out that given the state’s massive budget deficit and limited funds for housing programs, priority should be given to citizens rather than undocumented immigrants.

“This is unfair,” Republican Assemblymember Tom Lackey stated during the debate on the bill, “This is not the right path. It goes against accountability.”

Assemblymember Bill Essayli expressed his disgust in urging legislators to reject the bill, stating, “This is truly offensive.” “I really believe that when we incentivize illegal behavior and normalize illegal residency, it is a slap in the face to legal immigrants.”

Legislator Kate Sanchez, a granddaughter of legal immigrants, mentioned that the state’s provision of free healthcare and food programs is incentivizing undocumented immigrants. She said during the bill debate, “Immigrants will see California’s current policies as a huge welcome sign.” “If you are giving out free items, more people will come.”

Other bills related to undocumented immigrants awaiting Newsom’s signature include one providing unemployment benefits to undocumented immigrants and one allowing universities to hire undocumented immigrant students.

After signing five bills and vetoing one, Newsom currently has 985 proposals awaiting his signature or veto on his desk. All decisions must be made before the deadline on September 30 and submitted to the legislature.